Stocks continued their hot streak on Tuesday, extending gains for a seventh straight session, as renewed confidence in the Federal Reserve, which has ended its tightening campaign this year, lifted investors.
The Nasdaq Composite (^IXIC) rose 0.9%, extending its winning streak, while the S&P 500 (^GSPC) rose nearly 0.3%. The Dow Jones Industrial Average (^DJI) rose about 0.2%, or nearly 60 points.
Recent signs of weakness in the US economy have signaled to the market that the Federal Reserve may ease off on raising interest rates. But central bankers said the door remains open for additional increases, even if officials decide to pause for a while.
While market momentum has turned to a more optimistic reading, investors have plenty of cautious voices to check their activity, including Minneapolis Fed President Neel Kashkari, who stressed on Monday and Tuesday that the central bank likely has more work to do. In front of him to control. Economic inflation. Kashkari was one of several more hawkish members of the Fed to express caution on Tuesday. Meanwhile, Chairman Jerome Powell is scheduled to speak later in the week.
Read more: What a pause on federal interest rate hikes means for bank accounts, CDs, loans and credit cards
“There was a lot of euphoria last weekend due to the belief that the Fed was done, that the jobs market was slowing, and that the US economy was going to have a soft landing,” said Michael Hewson, chief market analyst at CMC. UK markets told Reuters. “People are starting to become a little clearer. There’s a risk that the Fed could go higher again.”
New Fed doubts cast a pall over the oil outlook, helping push WTI prices below $80 a barrel for the first time in more than two months despite the prospect of Saudi and Russian supply cuts. West Texas Intermediate crude futures (CL=F) and Brent crude futures (BZ=F) fell 4% to $77.48 and $81.76 per barrel, respectively.
Oil was also affected by trade data that showed the decline in China’s exports unexpectedly accelerating in October, a sign of weak external demand, while its imports rose. But there was a bright spot for the world’s second-largest economy, as the International Monetary Fund updated its GDP growth forecasts for the country this year and next.
In corporate news, WeWork (WE) on Monday filed for bankruptcy after America’s most valuable startup faced expensive leases. Its shares have fallen by about 98% this year.
Meanwhile, earnings season continues with reports from Uber (UBER) and Rivian (RIVN) highlighting Tuesday’s agenda, ahead of closely watched Disney (DIS) results scheduled for Wednesday.
Stocks achieve their seventh consecutive win
The S&P 500 (^GSPC) rose for the seventh straight session, extending its winning streak as investors rely on the Federal Reserve keeping interest rates steady through the end of the year. The Standard & Poor’s index rose by about 0.3%.
The Nasdaq Composite (^IXIC) added 0.9%, posting its eighth straight day of gains, while the Dow Jones Industrial Average (^DJI) rose 0.17%, or nearly 60 points.
$30 for ESPN streaming service ‘perfectly reasonable’: Fmr. Disney executive
Wall Street has been skeptical about how much Disney (DIS) could charge for a new ESPN streaming service it plans to launch. But the company’s former streaming head says sports fans will be willing to pay – even if the price is higher than what most platforms currently cost.
“People have always paid too much for sports,” Kevin Mayer, who now runs Blackstone-backed entertainment startup Candle Media, said at the Yahoo Finance Invest conference on Tuesday. “They didn’t always know that because back in the day when 95% of this country had pay TV packages, maybe 40% to 50% of the cost of that package was sports programming. … [But] Now they can do it explicitly.”
His comments come as Disney shares are at multi-year lows and activist investor Nelson Peltz is pushing for multiple board seats at the company. The company’s theme park business is slowing, its linear TV division is declining, and its streaming business is not yet profitable.
Mayer, who currently serves as a strategic advisor to CEO Bob Iger, said his former boss is “certainly focused on making sure that ESPN, a company he believes strongly in, is well-positioned for the future.”
Disney hasn’t revealed any details regarding pricing for the ESPN service, though analysts have estimated it would need to cost at least $30 a month to break even — let alone turn a profit.
However, Mayer insisted that $30 a month is “a perfectly reasonable price to get the full range of sports that ESPN will offer.”
Read more here.
The Fed’s Goolsby says a “golden path” to a soft landing is still possible
Austin Goolsbee, president of the Federal Reserve Bank of Chicago, said a significant decline in inflation that would come without sparking a recession was still a possibility.
“Over the next two months, we may equal the fastest decline in inflation in the last century,” Goolsbee said Tuesday. Interview with CNBC. “So we are making progress on the inflation rate.”
Goolsby noted that in previous battles against inflation, a recession usually follows when central bankers are forced to significantly reduce price pressures. But he said that achieving a soft landing in this tightening cycle would achieve what has never been done before, because of the size of the reduction in inflation that would be required.
He also noted that if the Fed continues to make progress on the inflation front, the debate will shift from whether to raise interest rates to how long to keep interest rates high.
A New York Fed study found that credit card debt and missed payments rose
Credit card balances rose by $48 billion in the third quarter to a record high of $1.08 trillion, according to data released Tuesday by the Federal Reserve. Federal Reserve Bank of New York. The $154 billion increase in year-over-year debt was the largest such increase since the series’ inception in 1999. Meanwhile, a measure of the 90-day delinquency rate for credit card holders rose to 5.78%, up from 3.69% before. general. A year ago, Yahoo Finance’s Gabriela Cruz Martinez reported.
The rise in delinquencies spanned across incomes and regions, but was particularly acute among millennials and those with car or student loans, the data showed.
The new data comes as a three-year moratorium on federal student loan payments expires in October and credit card interest rates rise to their highest levels in 38 years. The combination was a blow to some borrowers saddled with credit card debt.
Stocks trended in afternoon trading
Here are some of the stocks topping Yahoo Finance’s trending trends page on Tuesday afternoon:
Intel (INTEC): Shares of the multinational technology company rose 2% Tuesday afternoon after a report from Wall Street Journal Which revealed that the company is on its way to obtaining billions of dollars in government funding for secure facilities that produce its microchips US military and intelligence applications.
arm (arm): Arm shares rose more than 3% following reports that Nvidia (NVDA) and AMD (AMD) plan to launch Arm-based central processing units (CPUs) for Windows PCs.
Data Dog (DDOG): Shares rose nearly 30% Tuesday afternoon after the security software company beat earnings expectations and delivered a positive outlook as more customers move to the cloud in search of more robust security solutions amid rising cybersecurity threats.
Fitness Planet: (PLNT): Shares of the gym chain rose more than 12% on Tuesday after reporting a nearly 14% increase in total revenue from a year ago due to growth in same-store sales and more than two dozen new clubs.
Stocks are rising in afternoon trading, on pace for a 7-day winning streak
The S&P 500 (^GSPC) is on track for its seventh straight day of wins, if it holds on to its gains until the closing bell. The index rose 0.2% in afternoon trading.
The Nasdaq Composite (^IXIC) rose about 0.7%, aiming for an eighth straight day of gains, while the Dow Jones Industrial Average (^DJI) was just above the flat line.
Hopes for an end to interest rate hikes are allowing corporate earnings to shine
Strong performances from US companies generally move stocks higher again.
The 710 companies that reported their quarterly results last week saw gains of 2.3% in the trading session after they were released, according to Bespoke Investment Group. This is one of the best readings in the last 20 years, Yahoo Finance’s Josh Schaefer reports.
But it is not the earnings themselves that have changed investor behavior, but rather the changing narrative that has renewed hopes on Wall Street that the Fed is close to ending its interest rate hike campaign.
As the current market consensus has shifted over the past several trading sessions, investors appear to be less concerned about the headwinds that sent shares lower in October. As of late Tuesday morning, markets were anticipating a 90% probability that the Fed would keep interest rates steady in December, a marked rise from the roughly 58% probability seen a month ago.
Marriott CEO is committed to the Middle East market and optimistic about China
Marriott CEO Anthony Capuano said the hotel chain is tailored to the Middle East market, even as the conflict in Israel and Gaza holds the potential for broader regional instability. “We have a strong pipeline across the region,” Capuano said during a live interview on Yahoo Finance Invest, adding that keeping guests within the hotel ecosystem is a top priority. Marriott has more than twenty hotels in Lebanon and Egypt.
Capuano also emphasized the company’s growth in China, its second-largest market. He said the business environment there has “fully recovered to pre-pandemic levels.” He said that Marriott recently opened its 500th hotel in China, and plans to open 400 more.
As the United States and China grapple with rising economic and security tensions, Capuano said his company has been able to stay above the geopolitical fray because Marriott is an asset-light company.
Of the 500 hotels in Marriott’s portfolio in China and hundreds more on the way, most of the properties are “almost entirely Chinese-owned,” he added.
Stocks are trending in morning trading
Here are some of the stocks topping Yahoo Finance’s trending trends page in Tuesday morning trading:
Data Dog (DDOG): Shares rose 24% Tuesday morning after the security software company beat earnings expectations and delivered a positive outlook as more customers move to the cloud in search of more robust security solutions amid rising cybersecurity threats.
Fitness Planet: (PLNT): Shares of the gym chain rose more than 15% on Tuesday after reporting a nearly 14% increase in total revenue from a year ago due to growth in same-store sales and more than two dozen new clubs.
WeWork (work): Trading on the co-working space provider remains at a standstill, with the former high-flying startup expected to file for bankruptcy after its valuation fell from $50 billion. The company warned investors in August that its financial woes could force the company to shut down, punctuating what had been disastrous as a public company. Its last price was less than $1.
Peloton (Ptone): The struggling connected fitness company rose less than 1% Tuesday morning after investors sent the company down more than 5% in premarket trading. The volatile moves came after Deutsche Bank downgraded Peloton to Hold from Buy as it sought clarity on the growth outlook.
Stocks open mixed as momentum fades
Wall Street couldn’t keep up with the rally that fueled last week’s rally, as pessimism about the prospect of future interest rate hikes outweighed hopes for an end to the Federal Reserve’s tightening campaign.
The Nasdaq Composite (^IXIC) rose nearly 0.3%, continuing its winning run, while the S&P 500 (^GSPC) fell 0.06%. The Dow Jones Industrial Average (^DJI) fell 0.1%, or nearly 30 points.
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